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PALM BEACH, Fla.--(BUSINESS WIRE)--Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust
(REIT) focused on investing in upscale extended-stay hotels and
premium-branded select-service hotels, today announced that it will
rebrand its 105-room Washington, D.C. hotel to a Residence Inn by
Marriott following an upgrade/renovation. Chatham acquired the hotel in
July 2011, as part of a five-hotel portfolio acquisition.

“Residence Inn hotels command a premium RevPAR market share index of
125, compared to an index of 108 for the DoubleTree by Hilton brand. We
see excellent opportunities for the rebranded hotel to gain incremental
market share, RevPAR and cash flow.”

Additionally, the company announced it repaid the approximate $19
million loan balance outstanding on the Washington, D.C. hotel and
refinanced three other mortgage loans, extending the company’s debt
maturity and enhancing earnings through reduced interest costs. The
company will provide guidance for 2013 to reflect these transactions and
the pending acquisition of a 197-room Courtyard by Marriott, currently
under contract, during its fourth quarter earnings call on February 20,
2013.

Rebranding of Washington, D.C. Hotel

The company terminated the DoubleTree by Hilton franchise license on its
105-room Washington, D.C. hotel in Foggy Bottom, located at 801 New
Hampshire Ave. N.W., and will convert it to the Residence Inn brand,
upon concluding renovations scheduled for completion in May. In the
interim, the hotel will operate as the Washington Guest Suites.

“The hotel is in a fantastic location, and offers over-sized,
one-bedroom suites, as well as a rooftop pool. The hotel performed well
as a DoubleTree by Hilton, but we believe the Residence Inn brand and
demand for extended-stay hotels in downtown Washington will
significantly enhance the operating returns and value of the real
estate,” said Jeffrey H. Fisher, Chatham’s chief executive officer.
“Residence Inn hotels command a premium RevPAR market share index of
125, compared to an index of 108 for the DoubleTree by Hilton brand. We
see excellent opportunities for the rebranded hotel to gain incremental
market share, RevPAR and cash flow.”

Debt Refinancing

The company refinanced with Barclays Bank, plc approximately $80 million
in mortgage loans on the Residence Inn by Marriott hotels in San Diego,
Calif., and Tysons Corner, Va., as well as the Homewood Suites by Hilton
on the Riverwalk in San Antonio, Texas. The three new 10-year loans,
individually collateralized by the hotels, carry a fixed-interest rate
of approximately 4.6 percent, with principal and interest based on a
30-year amortization. The previous loans on the three properties carried
an average interest rate of approximately 6 percent. Additionally, the
company repaid the approximate $19 million loan balance outstanding on
its Washington, D.C. hotel using borrowings under the company’s
revolving secured credit facility.

“When we assumed the loans in connection with the acquisition of a
five-hotel portfolio from Innkeepers some 18 months ago, we negotiated a
key provision that allows us to repay the loans anytime without
prepayment penalty or defeasance,” said Dennis Craven, Chatham’s chief
financial officer. “That flexibility allowed us to take advantage of
favorable lending opportunities in today’s market. With these financings
at historically low rates, we reduced the weighted average rate on our
total fixed-rate debt by 80 basis points to 5.18 percent and extended
the weighted average maturity on our fixed-rate debt to late 2020 from
2017. We do not have any significant loan maturities coming due until
2016.”

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised REIT that was organized to
invest in upscale extended-stay hotels and premium-branded,
select-service hotels. The company currently owns 19 hotels with an
aggregate of 2,536 rooms/suites in 11 states and the District of
Columbia and holds a minority investment in a joint venture that owns 55
hotels with 7,282 rooms/suites. Additional information about Chatham may
be found at www.chathamlodgingtrust.com.

This press release may contain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
about Chatham Lodging Trust, including those statements regarding
acquisitions, capital expenditures, future operating results and the
timing and composition of revenues, among others, and statements
containing words such as “expects,” “believes” or “will,” which indicate
that those statements are forward-looking.Except for historical
information, the matters discussed in this press release are
forward-looking statements that are subject to certain risks and
uncertainties that could cause the actual results or performance to
differ materially from those discussed in such statements.Additional
risks are discussed in the company’s filings with the Securities and
Exchange Commission.